Please watch these short, excellent videos on the Realities of Retirement and how to protect yourself with the simple security of annuities.  For more information on how these may fit into your retirment plan, please contact us.

via Legislative Update from Black, Gould & Associates.

1. Health Insurance for baby - If Dad or Mom have health insurance when baby is born, rest assured your baby will be automatically covered for the first 31 days of life under either parent’s plan.  However, it is important to contact your insurance company ASAP to find out what they require…sometimes it’s automatic, but other times you must send in a new enrollment form (such was the case with my family insurance).
2. Lower health insurance costs - ask your agent or broker to check into individual health insurance costs for dad and baby, especially if it’s your first child.  This can often lead to lower premiums than a group plan.
3. Savings - During an airplane emergency, we are taught to take the oxygen for adults first, and then assist our children.  The same applies to your savings…make sure you do what you need to do for yourself first – reduce expenses, pay off debt, fund your IRA.  This will establish a solid foundation so you are better equipped to help your child.
4. Life insurance – no one likes this subject, but who is going to pay for your child’s care if mom or dad die prematurely?  Plan on adding 20 more years of insurance now.   It’s the best gift you can give your family.
5. Disability insurance – equally scary is the possibility mom or dad lose their ability to earn a living, because of an unexpected accident or illness that keeps them out of work for a period of time.  Ask your agent to review your income replacement plan for anyone working to put food on the family table.

These are the top 5 financial considerations among young parents, from my experience.  If you have questions or need help with any of these areas, our office  is here to assist you.

If you have a grandfathered plan and have health conditions this is something you may want to consider.

Please call L & A Services to learn more about your specific options.

- Adam Clark

Consider ways to boost your savings
• Contribute as much as you can to your 401(k) or IRA.
• If you are age 50 or older, take advantage of catch-up contributions.
• Work longer or consider part-time work in your early retirement years.
• Think about delaying Social Security payments.
• Evaluate your anticipated lifestyle and trim some expenses.

Understand key Social Security factors
• It could make up a substantial portion of your guaranteed income; when you start collecting impacts your total benefitt amount.
• Know the four key factors that could affect your payments (see reverse).

Evaluate your portfolio and create a plan
• Consider what your retirement risk tolerance is: conservative or aggressive?
• Consolidating old 401(k)s into an IRA can make it easier to manage your overall financial picture.
• Create a detailed retirement income plan.

Research health care options
• Health care expenses in retirement can be unexpected and higher than planned.
• Consider options such as long-term care insurance and supplemental health care options.
• Understand the Medicare application process, including timelines and premiums, which can be impacted by your age and Social Security.

Protect your retirement plans
• Have an emergency fund you can access for unexpected events or costs during retirement.
• Pay off high-interest debt to reduce your expenses as you enter into retirement.
• Regularly conduct a portfolio review.
• Ensure you have updated your beneficiary information, will, and estate plan.

Material Courtesy of Fidelity

Medicare offers prescription drug coverage to everyone with Medicare. Prescription drugs can be a major cost as you age and they are NOT covered by Original Medicare. There are two ways to get Medicare prescription drug coverage:

1.  Medicare Prescription Drug Plans (sometimes called “PDPs”). They can be added to Original Medicare and Medicare Supplement (Medigap) Plans.

2.  Part D coverage may also be included in a Medicare Advantage  plan (sometimes called MA-PDs).

When purchasing a stand-alone Part D insurance plan to go along with a Medicare Supplement (Medigap) plan, it provides protection against catastrophic health care costs.

Part D plans are offered through private insurance companies. Plans vary widely, as do prices. How specific drugs are covered also differs among plans, too. Even if you do not take a lot of prescriptions now, you should still consider joining a Medicare drug plan. To get Medicare prescription drug coverage, you must join a plan run by an insurance company or other private company approved by Medicare. Each plan can vary in cost and drugs covered.

If you decide NOT to join a Medicare drug plan when you are first eligible, and you do not have other creditable prescription drug coverage, you will likely pay a late enrollment penalty. See BELOW: Employer Coverage.

There are two ways to get Medicare prescription drug coverage:

1. Medicare Prescription Drug Plans. These plans (sometimes called “PDPs”) add drug coverage to Original Medicare and an option to add a Medicare Supplement (Medicare Gap) plan.

2. Medicare Advantage Plans (like an HMO or PPO) or other Medicare health plans that offer Medicare prescription drug coverage. You get all of your Part A and Part B coverage, and rescription drug coverage (Part D), through these plans. Medicare Advantage Plans with prescription drug coverage are sometimes called “MA-PDs.”

Who Can Get Medicare Drug Coverage?

To join a Medicare Prescription Drug Plan, you must have Medicare

Part A OR Part B. To join a Medicare Advantage Plan, you must have Part A and Part B. You must also live in the service area of the Medicare drug plan you want to join.

OPTIONAL:  Employer or Union Health Coverage—Health coverage from your, your spouse’s, or other family member’s current or former employer or union. If you have prescription drug coverage based on your current or previous employment, your employer or union will notify you each year to let you know if your prescription drug coverage is CREDITABLE.
(This means that your employer prescription coverage is equal to or better than the national medicare Part D coverage.) Keep the information you get each year as you will have to produce a copy of this letter if you decide to change from your employer coverage. Call your benefits administrator for more information before making any changes to your coverage.

Note: If you join a Medicare drug plan you, your spouse, or your dependants may lose your employer or union health coverage. You also may not be able to drop your employer or union drug coverage without also dropping your employer or union health (doctor and hospital) coverage. If you drop your employer or union coverage, you may not be able to get it back.

WE can help you make sure make the RIGHT decision and you have the RIGHT plan for your health and financial needs. Call our office and ask for the Medicare specialists for health and prescription drugs.

An updated model notice is available at http://www.cms.gov/CreditableCoverage/ 

Shortly, insurance carrier will be sending employers notice on whether or not the prescription plan offered is considered creditable or not.  Based on this information, employers will be required to provide the appropriate notice to employees by October 15th.